Legal Question in Bankruptcy in Virginia

What does bankruptcy actually do to debt?

I have an overwhelming amount of debt, with a substantial part due to the IRS. I already have a payment schedule worked out with them, but another creditor has garnished my wages. I cannot keep up the IRS payment and the garnishment. What exactly does bankruptcy do regarding past debt? Does it "wipe" them out or only a portion? I am assuming the debt to the IRS will of course stay.

Thank you.


Asked on 4/22/99, 3:21 pm

3 Answers from Attorneys
Alexander M. Rosenfeld Rosenfeld & Stein, P.A.

Re: What does bankruptcy actually do to debt?

The bankruptcy should wipe out all your debt. The garnishment should be quashed and the underlying debt discharged. The tax lien will most likely continue unless the taxes fall within the type that can be discharged. See a local attorney who is experienced in this area. You may call me at 305-940-8080.

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Answered on 5/26/99, 7:08 pm
Olivier Long Law Office of Olivier Denier Long

Re: What does bankruptcy actually do to debt?

IRS debt usually stays, and other debt usually is wiped out. But the details are critical, and you should consult with experienced bankruptcy counsel. I offer a free half hour to prospects who complete my questionnaire. Call if you are interested. Olivier Long -- 703-591-1600.

Olivier Long

Law Offices of Olivier Denier Long

10500 Sager Avenue, #B


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Answered on 4/23/99, 7:48 am
Daniel Press Chung & Press, P.C.

Re: What does bankruptcy actually do to debt?

The other debts will be discharged, and taxes may be, depending on their age. A tax lien may come ahead of the wage garnishment; you may be able to have the wage garnishment stopped on that ground if you decide not to file bankruptcy. We do a lot of tax-related bankruptcy work. Feel free to call.

Daniel Press

Chung & Press, P.C.

6723 Whittier Ave., Suite 302


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Answered on 4/23/99, 12:25 pm


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